Investor Presentation FY2019 DISCLAIMER & REGULATORY - - PowerPoint PPT Presentation

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Investor Presentation FY2019 DISCLAIMER & REGULATORY - - PowerPoint PPT Presentation

Investor Presentation FY2019 DISCLAIMER & REGULATORY DISCLOSURE This document has been prepared as a summary only, and does not contain all information about the Companys assets and liabilities, financial position and performance, profit


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Investor Presentation FY2019

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https://somnomed.com

DISCLAIMER & REGULATORY DISCLOSURE

This document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial position and performance, profit and losses and the rights and liabilities attaching to the Company’s securities. This document should be read in conjunction with any public announcements and reports (including financial reports and disclosure documents) released by SomnoMed Limited. The securities issued by the Company are considered speculative and there is no guarantee that they will make a return on the capital invested, that dividends will be paid on the Shares or that there will be an increase in the value of the Shares in the future. Some of the statements contained in this release are forward-looking statements. Forward looking statements include but are not limited to, statements concerning estimates of future sales, expected revenues and costs, statements relating to the continued advancement of the Company’s operations and other statements which are not historical facts. When used in this document, and on other published information of the Company, the words such as “aim”, “could”, “estimate”, “expect”, “intend”, “target”, “forecast”, “future”, “will”, “may”, “potential”, “should” and similar expressions are forward-looking statements. Although the company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could cause actual results and projections of future performance to differ from these forward-looking statements as a result of known and unknown risks, uncertainties and other factors not anticipated by the Company

  • r disclosed in the Company’s published material. Many of these factors are beyond the control of SomnoMed Limited and may involve subjective judgement and

assumptions as to future events, which may or may not be correct. The Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position.

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Treatment focused Technology driven

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1.Vision 2.Market opportunity 3.Core strengths 4.The alternative 5.Summary FY19 6.Financials 7.Future horizons 8.Outlook and guidance FY20

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https://somnomed.com

SomnoMed will be a leader in the treatment

  • f patients suffering from obstructive sleep

apnea and relevant adjacent conditions Advancing the adoption and acceptance

  • f the treatment therapies by medical

specialists, dentists, patients and insurers

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Vision/Mission

Vision: Mission:

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Obstructive Sleep Apnea

SOMNOMED

Obstructive sleep apnea is a disorder that occurs when a person’s breathing is interrupted during sleep because the airway becomes blocked

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Global market opportunity is large

SOMNOMED

https://somnomed.com

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1.36 billion patients globally suffer with OSA*

OSA MARKET

Mild OSA 936m patients Moderate & severe OSA

Large addressable markets: 54m mild OSA sufferers 26m mild OSA sufferers 23m mild OSA sufferers 22m mild OSA sufferers 3m mild OSA sufferers Affects 9% of women and 25% of men globally

* Benjafield et.al : Estimation of the global

prevalence and burden of obstructive sleep apnoea: a literature-based analysis, Lancet Respir Med 2019

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https://somnomed.com

The CPAP therapy dilemma

50% of patients do not use CPAP after 6 months*

Clinical Insight “The findings are sobering. Our data suggest that despite numerous changes to machine and mask dynamics as well as behavioral interventions, CPAP adherence remains a severe problem for management of patients with OSA - the concept of CPAP as gold standard for OSA therapy is no longer valid”.

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* Catchside et. al “Predictors of continuous positive airway pressure adherence” Medicine Reports, 23 Sept 2010

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There is a high ceiling for COAT™ growth

SOMNOMED

https://somnomed.com

Source: Reimbursement authorities / SomnoMed internal / gathered in-market knowledge

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https://somnomed.com

SomnoMed core strengths

Design and innovation

Titration methodology Product range Proprietary materials

Manufacturing

Traditional Digital done right Artificial Intelligence

Sales and distribution

Strong market brand Direct global footprint Own sales teams

Service and support

Technical support Best in class service

Leader in the oral appliance treatment of Obstructive Sleep Apnea

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https://somnomed.com

The patient preferred alternative

SomnoMed is the world leader in oral appliances with over 500,000 patients treated worldwide

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https://somnomed.com

FY2019 Summary

SomnoMed’s core revenue growth +12% over prior year to $59m North America +11% Europe +13% APAC +16% North America Q4 direct dental revenue growth of +31%

  • ver prior year

Underlying EBITDA $5m and +27% over prior year Digital manufacturing platform in place with first fully digitally made product soon to be launched Cash on hand $8m and ahead of forecast, with long term banking facility now in place Treated >500,000 patients world-wide First managed healthcare contract signed with large German insurer RSS now closed within the promised cash range Management team in place to achieve strategic

  • bjectives

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https://somnomed.com

Financials

Revenue growth

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Financials

Core revenue growth by region

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Financials

North America FY19 direct dental revenue % growth by quarter (in US$)

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Financials

Europe FY19 revenue % growth by market segment (in EURO)

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Financials

Gross margins underpinned by strong MAS margin

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31.1 34.7 3.2 0.4

  • 5.0

10.0 15.0 20.0 25.0 30.0 35.0 40.0 MAS Other Revenue Managed Care Core Gross Profit (A$m) 70% 87% 4% 59% 1 2 3 4

Gross margin

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https://somnomed.com

Financials

EBITDA

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Financial Summary - AUD $000's FY19 FY18* % Revenue 58,892 52,394 12% Gross margin 34,572 31,856 9% Regional sales and marketing expenses (14,967) (13,789) 9% Regional administrative expenses (11,195) (9,381) 19% Operating profit before corporate, research and business development 8,410 8,686

  • 3%

Corporate and headoffice expenses (5,018) (4,786) 5% EBITDA** 3,392 3,900

  • 13%

Add back: One-off debtor impairment for S3 1,127

  • Add back: One-off corporate cost

426

  • Underlying EBITDA

4,945 3,900 27% Key Metrics MAS gross margin % 70% 73% Group gross margin % SOM core 59% 59% * restated ** EBITDA as adjusted does not include share and option expense, gain on contingent consideration payable and impairment of goodwill SomnoMed core

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https://somnomed.com

Our future horizons

Positioning “the patient’s alternative” Technology driven Advancing treatment and building the core

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Advancing Treatment and building the core

Launch of SomnoDent Avant™

Improved comfort Innovative design Early clinical results look promising

Digital strength chain

Unique digital manufacturing platform to drive future growth

Relationship bridge

Restore relationships with USA dentists Build on medical relationships globally

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https://somnomed.com

Redefining effective medical

  • utcomes with prescribers

If you don’t use it, it doesn’t work

  • 1. Compliance research & data
  • 2. Medical community advocacy
  • 3. Key Opinion Leaders (KOL)

Target specific mild and moderate patient profile through the Sleep Apnea Profiles Campaign

Drive patient demand

Strongly position COAT™ as the alternative to CPAP

  • 1. Refine consumer education on

the “alternative” treatment

  • ption
  • 2. Re-directing and targeting

CPAP failures

Positioning “the patient’s alternative”

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Connected health

Upfront patient pathway management and optimization before treatment decision

Technology driven

Use of immense database and AI to add value to both medical and dental partners Compliance measure Further technology advances

Technology bridge

Exclusive software platform connecting medical specialists to qualified dentists using SomnoMed devices

Patient pathway management

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https://somnomed.com

FY20 Outlook and guidance

  • Broadening the sales and marketing focus in all regions
  • SomnoDent Avant™ launch
  • Digital done right and next steps
  • Reimbursement policy
  • Horizon development
  • Guidance:

Revenues from $59m to between $67m and $69m (growth between 14% and 17%) EBITDA from $5m to between $6.3m and $6.7m (growth between 26% and 34%)

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Treatment focused Technology driven

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Chief Executive Officer : Mr Neil Verdal-Austin Chief Financial Officer : Mr Hervé Fiévet Address: 20 Clarke Street, Crow’s Nest, Sydney 2065 Telephone: 02 9467 0400 Website: www.somnomed.com

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